Investment Q&A

Q: Hi Peter and team,
XLE is -10.23% and XEG is -20.93% in the last 12 months. If I were to add energy in my RRIF portfolio, would you recommend XEG or XLE and why? I own 8% energy (SU, COS % XEG totaling 8%)My intention is to sell EWH and replace with XLE
Thanks, Karl

Q: Hello Peter!

All the stocks from your Model Portfolio accept for Amaya have been trading on the TSX more than 7 years and if the Model Portfolio would be at that time in existence that all of the stocks from Model Portfolio would participate in 2008 stock market crash.

I compared stocks from Model Portfolio to Daily Frame Chart of S&P 500 and noticed that all of them would be
very much affected by "Death Cross" (EMA50 / EMA200) on S&P500 started on the middle of January 2008 and ending with "V" bottom in March 2009.
If one would ride out Model Portfolio through this, then devastation would be at least 50% or more.

My question is do you have any point like "Ded Cross" on S&P 500 or some different criteria that the situation would force you to
"go to cash" with entire Model or future Growth Portfolio to avoid stock market crash losses, and would you advise 5i Research members if the situation would arrive or would you ride it out through the crash.

Regards Andrew B.

Q: What is your view on Contagious Gaming Inc.(CNS). The volume picked up after a long decline. Also concerning all gaming companies, would the availability of software playing perfect poker (www.bbc.com/news/science-environment-30718558) discourage online palyers? Thanks for your great service.
Peter

Q: My question is on M-x as well as M.PR-x as I hold some of each. How do you feel about this stock going forward? What do you think of its underlying holdings in our current low energy environment? How much of their business is Alberta based? And how safe is the cash flow in terms of covering their preferred dividend? Thanks for your help.

Q: Happy New Year Team!!
I am looking at putting together a new TFSA portfolio of ETFs with the following considerations:
-$36500 to invest.
-time horizon 10 years +.
-target 10% growth per year.
-goal of a diversified mix with exposure in and outside of Canada.

Question: Which ETF's in which categories would you recommend? (ie. Canadian, US, International, Sectors, Bonds, Dividends, etc.)
Thank you, I look forward to your reply.

Q: I currently own some M.PR.A preferred shares in my TFSA (since they are interest-bearing and hence not eligible for the dividend tax credit). They appear to be true perpetual prefs (i.e. no issuer redemption or shareholder retraction provisions) offering $1.00 in annual interest. At their current price of $10.05, this is nearly 10% p.a.

Given their attractive interest rate and "seniority" to the common shares, as well as the seemingly diversified nature of Mosaic's underlying business, I am considering purchasing more. Can you provide me with any indication as to the risks associated with Mosaic and these preferred shares?

Thank you!

Q: Hi Peter,

The previous question was more about market sentiment than anything company specific. I hold a very diversified list of 40 stocks but the list I provided were the worst offenders.

Maybe I should find a new hobby like stamp collecting or better yet get a gym membership until the market uncertainty passes which I suspect will take a few more months.

Thanks

Q: Would you please recommend 4 small cap growth stocks.
High risk long term is OK.
Thanks in advance.
Stephen

Q: Peter and Team,
We have Tourmaline, Surge, Manitok & Corridor in ~equal amounts. Does it make sense at this time to sell the lesser known Mei and/or Cdh to top up our Tou and Sgy with the mind they are better known bigger producers and will likely see more attention when the sector turns ? Other tacts are to stay put or use the proceeds somewhere else (Wcp ?). Thank you, and have a great weekend. Paul

Q: Hi Peter,

What are my rights, if any, to ask and expect honest answer from a company where I am a shareholder? For example, am I permitted to call a person in charge of investor relations of a corporation and ask specific questions about their balance sheet or strategy or lack thereof? If I'm not satisfied with the answers in that I am rebuffed, do I have an avenue to seek assistance from a regulatory agency to discuss my experience and hence improve transparency. Thank you for your time.

Q: WSP by all account is a stock that should be on cusp of a major break through. You have it in your Income Portfolio (your ACB is $35.73, mine is $34.35) - we are both underwater, a number of BNN guests have it as their top picks in recent months as well. In my own analysis I though all the numbers are pointing upwards, hence I made it my largest investment in my portfolio (about 9%).

However, I'm down about 5% from my ACB in this stock. Why are we all wrong about WSP so far? I can't find anything wrong in it publish materials. Perhaps the Q4 results may shed more light.

What is your assessment of WSP?

Thanks.

Q: Hi 5I Team,

What are your current thoughts on BDT?

Best wishes,
Terri

Q: Hello Peter
Happy New Year .
How would you play this huge drop in oil prices of late .Which stock will benefit from the low oil prices ? Is there a ETF that tracks the air line stocks or what is your recommendation to benefit from these admormal oil prices ? How would you position your self from this oil price drop ?
Kindest Regards
Claudio

Q: Could I get your opinion on this stock. Much appreciated.

Q: Hi Peter & Team,

I need a few stocks that pay dividends for my kids accounts, each child has 5k to purchase 2 stocks. I have narrowed it down to these few names ( because of asset mix in their accounts) but ultimately my kids will choose. One is in a TFSA and the other is a cash account because of age. Could you please give an argument to the ones you favor ?

Thank you for the great service!

Dave

Q: Hi to All!! A quick question. What are your thoughts on adding ROC (Rockwood Holdings) to a Growth/Divivdend portfolio. It was mentioned that this is good exposure to Lithium, which inturn, will be used in increasing quantities in the auto industry. Thanks, Tamara

Q: Good morning,
I have 16% of my portfolio in telecom's (Telus, AT&T & Verizon) and wanting to trim it back to 10%. Do you think I should shave some off each,or sell one of them and if so which one? Also,in your opinion what telecom out there is the best to hold? I am looking 5 year time frame, medium risk.
Thank-you
Deborah

Q: Hi Peter

For precision Drilling Debt/Equity level on a quarterly figure Morningstar has Sept/2014 at Total Liabilities at 2,773 and Stockholders Equity at 2,544 which would give you a ratio of 109% is this correct.
thanks Gord

Q: It's down quite significantly after earnings. Is it a good entry point under 25? Thanks.

Q: I just read Cam Hui's piece in the 5 for 5i. I notice he isn't positive on Canada and the Cdn. banks. Would you suggest we concentrate on small caps with large exposure to the U.S and avoid companies such as ACQ.
Do you agree with Hui that Cadn. banks face some strong headwinds this year?